Azali, M. and Royfaizal, R.C. and Lee, C. (2008): Japanese Yen as an alternative vehicle currency in Asian.
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Members of Asian countries have been thinking about using others’ currencies instead of U.S. Dollar for regional trade. Hence, there is a strong case to study the Japanese Yen as an alternative hard currency in this region for trade transaction. This paper investigates the long-run co-integration to determine the possibility and feasibility to use Yen as a future vehicle currency in the Asian region namely Malaysia, Singapore, Thailand, Indonesia, the Philippines, China, Korea and India by examining their daily exchange rate movements denominated in Yen. Empirical evidence shows that four out of eight countries namely Malaysia, the Philippines, Singapore and Korea are the countries that support our hypothesis.
|Item Type:||MPRA Paper|
|Original Title:||Japanese Yen as an alternative vehicle currency in Asian|
|Keywords:||Exchange Rate, Cointegration, Granger-causality, Asian|
|Subjects:||F - International Economics > F3 - International Finance > F31 - Foreign Exchange
F - International Economics > F3 - International Finance > F33 - International Monetary Arrangements and Institutions
|Depositing User:||Royfaizal Razali Chong|
|Date Deposited:||03. Dec 2008 06:18|
|Last Modified:||18. Feb 2013 01:01|
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